OIL DEMAND

Fuel sales had dropped in April after Prime Minister Narendra Modi announced a nationwide lockdown to control the spread of COVID-19 infections. The lockdown shut factories and offices, took most vehicles off roads, stopped train movement and suspended air travel.

The 13-member cartel and its allies, among them Russia, decided to extend by a month deep cuts, first agreed in April for May and June, to boost prices hit hard by the new coronavirus pandemic, an OPEC statement said. Under the terms of the April agreement, OPEC and the so-called OPEC+ countries pledged to cut output by 9.7 million barrels per day (bpd) from May 1 until the end of June.

OIL said that operational activities were affected by protests staged by local people in front of Baghjan EPS (Early Production Set-up) installation. The bandh was withdrawn after Friday's meeting at the Deputy Commissioner’s office.

Petroleum minister says domestic producers need to wait till prices normalise and that PSUs have used low rates to fill reserves. Companies like ONGC should not be hit… However, overall low gas prices in market will impact the finances of all gas projects, including that of deepwater.